Legal service for foreign clients
Bankruptcy & Business Rehabilitation in Thailand
Stop the bleeding, or collect inside a process with a clear order of priority.
Quick answer
Distinguish bankruptcy from rehabilitation eligibility and procedure. Section 91 generally gives two months from publication of the absolute receivership order for bankruptcy proofs of claim. In ordinary Chapter 3/1 rehabilitation, section 90/26 generally gives one month from publication of the planner-appointment order. Check notices and exceptions; the two-month period is not universal. Assess conflicts before acting for a creditor or debtor.
Contact our team for a quotation — Contact our team for a quotation · Depends on the procedure, court orders and plan terms; no approval or completion date is guaranteed
Who this is for
- Companies short on liquidity whose business still works if debt is restructured
- Trade creditors whose debtor entered rehabilitation
- Guarantors pursued after the principal debtor's bankruptcy
- Directors needing to know their personal exposure before it escalates
- Buyers eyeing a business or assets out of the bankruptcy process
What you receive
- Assessment of the debt position and the choice between bankruptcy, rehabilitation, or out-of-court settlement
- Filing the petition at the Central Bankruptcy Court with the accounting exhibits
- Drafting or opposing the rehabilitation plan and attending creditors' meetings
- Lodging the debt claim on time with proof of the underlying obligation
- Reviewing acts open to avoidance, such as preferential payments made before insolvency
- Protective strategy for director and guarantor liability
Documents to prepare
- Three years of financial statements plus the latest trial balance
- Creditor and debtor ledgers with balances and the underlying documents
- Loan agreements, guarantees, and every security document
- Asset schedule and all registered encumbrances
- Relevant board or shareholder resolutions
How it works
5-step process
- 1
Diagnose which route fits
Test the minimum debt threshold, ability to pay, and the odds a plan passes the creditors' vote.
- 2
Assemble auditable financials
Review financials and debts with the business's accounting preparer; additional accounting or forecasting work is a separate scope.
- 3
File and assess statutory restrictions
Court acceptance triggers section 90/12 restrictions, subject to statutory exceptions and court orders; not every enforcement measure is universally barred.
- 4
Build the plan and negotiate
Design a payment schedule creditors accept and the business can actually run on.
- 5
Perform the plan and report
Track performance and report to the plan administrator and the court on schedule.
In depth
Bankruptcy & Business Rehabilitation: what foreign clients need to know
A business short of cash has options beyond being sued creditor by creditor. Thai law allows a rehabilitation petition that suspends debt service temporarily and restructures the company under a plan creditors vote to accept. Conversely, a creditor convinced the debtor cannot recover uses the bankruptcy route to pool assets and distribute them methodically. Choosing the wrong road at the start costs both time and bargaining power.
Entry thresholds, and what the acceptance order does
A rehabilitation petition must show the company is insolvent or unable to service matured debt, and that there are proper grounds and a genuine route back — not merely a wish to escape creditors. The court weighs the business plan, projected cash flow, and the credibility of the proposed planner.
Court acceptance of a rehabilitation petition engages the restrictions specified in section 90/12. Assess the right, exceptions and orders. Section 90/13 permits applications to modify or lift restrictions where its conditions are met, read with section 90/14. The stay does not stop every proceeding or enforcement measure without exception.
Building a plan creditors will actually accept
Plans that pass a vote usually share four elements: creditor classes grouped by the nature of their rights, differentiated repayment rates and periods per class, new money or asset sales to restore liquidity, and a compliance mechanism with clear default consequences. Every figure needs a stated assumption behind it, not a hopeful estimate.
Reconcile plan assumptions with financial statements and tax exposure through the business's accounting preparer. Assess shareholder benefits and creditor classes by rights. Additional accounting or forecasting requires a separate agreement; reconciled figures alone guarantee neither creditor approval nor judicial confirmation.
For creditors: when a bankruptcy petition is the right move
A bankruptcy petition suits cases where nothing viable remains, or where assets are being shuffled out, because once absolute receivership is ordered, control passes immediately to the official receiver and earlier transfers that prejudiced creditors can be unwound.
Before filing we test two things: whether the claim meets the statutory threshold, and whether enough assets will realistically enter the pool to produce a dividend. A creditor who files into an empty estate spends money for nothing.
Cost structure: government fees vs professional fees
| Item | Official fee | Professional fee | Note |
|---|---|---|---|
| Filing the rehabilitation petition | Court and publication fees at Central Bankruptcy Court rates | Contact our team for a quotation | Includes drafting, exhibits, and the acceptance hearing |
| Preparing the plan and running creditor meetings | Meeting and notice costs as set by the officer | Contact our team for a quotation | Use business and accounting-preparer records; additional forecasting needs a separately agreed scope |
| Lodging a creditor's proof of claim | Filing fee at the set rate | Contact our team for a quotation | Identify the procedure and triggering notice promptly. Late filing can prejudice recovery; assess applicable exceptions or permission routes, not an assumed extension |
| Filing a creditor's bankruptcy action | Court fees plus the cost deposit the court requires | Contact our team for a quotation | We first assess whether the estate will yield an actual dividend |
Illustration: factory liquidity after account attachment
Situation: Assume a factory has several creditors and unfilled orders but its purchasing account is attached.
Assessment points: Assess rehabilitation eligibility, attached rights and cash flow; orders alone do not establish a viable plan.
Illustrative example; outcomes depend on the facts and the authority's decision.
Illustration: machinery transferred before closure
Situation: Assume machinery moves to a company sharing shareholders before the debtor closes.
Assessment points: Check price, transfer date, intent, recipient rights and avoidance grounds; common shareholders alone do not establish fraud.
Illustrative example; outcomes depend on the facts and the authority's decision.
When to act, and when waiting is fine
Petition for rehabilitation before the operating account is frozen
A business still circulating cash carries far more weight in a plan than one already stopped.
Wait if you can still restructure directly with the main creditors
Compare costs, cooperation and deadlines; negotiation does not itself stop enforcement or prescription and is not guaranteed cheaper.
Creditors should file for bankruptcy once assets start moving
The power to unwind transfers here is broader than in an ordinary debt claim.
Do not file into an estate with no assets
We will say so plainly and offer alternatives, such as negotiating a part payment.
FAQ
Frequently asked questions
How much debt supports a bankruptcy petition?
Section 9 requires insolvency and ascertainable debts owed to one or several petitioning creditors totalling at least THB 1 million for an individual or THB 2 million for a juristic person, whether payable now or in the future. Secured creditors must also satisfy section 10; the monetary threshold alone is insufficient.
Can creditors still seize assets in rehabilitation?
Check whether seizure or enforcement falls within section 90/12, including exceptions and orders under sections 90/13–90/14. The stay is not an exceptionless ban; identify the creditor's applicable filing and other procedural deadlines.
Are directors personally liable?
Generally no, unless they gave guarantees or acted in bad faith or in breach of duty.
Does a late claim lose the right?
Late filing can prejudice recovery. Bankruptcy generally uses two months under section 91; ordinary Chapter 3/1 rehabilitation uses one month under section 90/26, with different triggering notices. Immediately assess applicable exceptions or permission routes; late filing is not automatically permitted.
When is a bankrupt discharged?
Normally by operation of law after the statutory period, absent grounds to extend it.
Is buying assets out of bankruptcy safe?
Review the sale notice, seller's authority, rights, encumbrances and delivery terms for the particular asset. An official sale does not guarantee an unencumbered asset or immediate possession.
After a rehabilitation petition, can existing management stay on?
Often yes, depending on the planner the court appoints and the terms creditors approve.
Does the stay cover tax debt?
It reaches enforcement in many cases, but the claim must be lodged correctly; we check each one.
How many years does rehabilitation run?
Separate petition consideration, plan preparation, voting and performance. Check applicable statutory periods and orders at each stage; no universal 8–14 month approval or 3–5 year completion is promised.
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Written by: Thai Law & Accounting Services — attorneys and licensed accountants
Professional review: A lawyer must review the applicable law and facts before use in a real matter. This notice does not establish that this page has been reviewed or certified by a lawyer.
Last updated: 2026-08
Information as of August 2026. Government fees and processing times change — verify with the relevant agency before acting, or let our team verify for you.